The cryptocurrency market posted a modest rebound in the past 24 hours, climbing 1.45% to a total capitalization of $3.73 trillion.
Trading activity stood at $111.19 billion, down 15.03% from the previous day, while Bitcoin’s market dominance held at 61.1% and Ethereum at 11.5%. Sentiment remains neutral, with the Fear & Greed Index at 52/100.
This uptick comes after a 5.49% weekly drop, fueled by reduced leverage risks, growing momentum in the Binance ecosystem, and investor optimism over possible U.S. Federal Reserve rate cuts in September.
A key driver behind the recovery is the unwinding of excessive leverage in the derivatives market. Open interest fell 13.4% to $103 billion, and Bitcoin liquidations plunged by nearly half, reducing systemic risk and allowing spot trading to lead the price action. The crypto-to-Nasdaq correlation also weakened, hinting at a partial decoupling from broader financial markets.
Meanwhile, Binance-related assets outperformed as the BNB Chain processed $191 billion in decentralized exchange transactions over the past month. PancakeSwap’s new dynamic rewards and the chain’s hybrid CeFi-DeFi appeal have helped cement BNB’s position as a “blue-chip” altcoin, drawing fresh capital into the altcoin market and pushing the Altcoin Season Index higher.
On the macro front, traders are pricing in an 89% probability of a Fed rate cut in September following weaker-than-expected labor data. While looser monetary policy could fuel further gains in risk assets, a coordinated regulatory push by the CFTC and SEC remains a potential headwind for institutional crypto adoption.
Today’s rebound appears to be a blend of technical recovery, ecosystem-specific growth, and cautious macro optimism. If market capitalization can sustain levels above $3.75 trillion, bullish momentum may build ahead of key economic data later this week.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/neutral-sentiment-stronger-altcoins-crypto-market-sees-modest-recovery/